Independent MEP Nessa Childers welcomed today’s vote adopting an EU Emissions Trading System at the European Parliament’s environment committee.
A member of this committee, Ms Childers said: “Today’s vote was achieved after very difficult negotiations. The measures do not go far enough, but they are an improvement on what the European Commission was proposing. This is a first step towards making the ETS a truly ‘cornerstone’ policy in our fight against climate change.
“While I am pleased we have secured much needed restrictions for cement manufacturers, regrettably there were compromises needed to get the necessary political support today. These included a new 10 billion subsidy scheme for the most power intensive industries, thereby diluting incentives for the sector to green their power sources. The steel and fertilizer sectors will be given generous allowances and the Polish government will be able to continue to support their coal fired power sector.
“But nevertheless this is progress of sorts, but we are not over the line yet. The ETS report has to go before plenary in February (indicative) and then negotiated with the member states before it comes into force.
In summary, this is what was agreed:
– Cement out of the carbon leakage list with border adjustment in place
– Shipping included in the ETS
– Cancellation of 800 million from the MSR followed by a possible 200 million later
– Double uptake rate for MSR for 4 years, then reviewed to be extended if needed to keep market in balance
– Just Transition Fund
– 57% auctioning 43% free allocation split, with a 5% reserved from auctioning to protect against CSCF if necessary
– Update of benchmark values with real linear reduction for each sector
– 10c and Modernisation funds retained with no new coal financed
– 0% free allowance for sectors off the carbon leakage list, but district heating receives 30%
– Threshold for Qualitative Assessment lowered to 0.12 and data disaggregation levels beyond NACE-4 included